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Funding Renewables

Vattenfall presentation

June 2010

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Vattenfall in brief

• Europe’s fifth largest generator of electricity and the largest producer of heat

• Vision: To be a leading European energy company

• Net sales 2009: ca € 21,4 billion (SEK 205 billion)

• EBIT: € 2,9 billion (SEK 28 billion)

• Electricity: generation, distribution and sales

• Heat: production, distribution and sales

• Gas: production and sales

• Energy trading in electricity, gas and coal

• Mining and sales of lignite

• Consulting and contracting operations in the energy sector

• 40,000 employees

• Vattenfall AB is wholly owned by the Swedish state

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Our Markets

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Our Business Strategy and Commitment

4

Low emitting energy forms:

Renewables (Hydro, Bio, Wind, Wave)

Nuclear Power

Coal with CCS

Energy Efficiency Services

Sustainable Cities

E-mobility

New applications for electricity:

Initiatives in two main areas:

Our business strategyFor improved competitiveness and long-term profitable growth

Our commitmentOperations climate-neutral by 2050

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Focus on expanding renewables

2008 2030

30,42,4

23,1

44,1

Coal Gas Nuclear Coal CCS Renewables

15%

20%

40%

20%

5%

170 TWh

Coal CCS

Coal

GasNuclear

Renewables

320 TWh

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Shift in production portfolio

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Vattenfall Wind Power - Europe

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Wind Power - UK

Under construction:Off Shore: • Thanet 300+ MW• Ormonde 150 MW• Aberdeen Bay 86 MW

On Shore:• Edinbane 41 MW

Operational:• Kentish Flats 90 MW

Early pipeline• ~ 500-800 MW

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Wind Power – the Future – Large Scale and Windy

• Capex 2010 – 2014 ~ £1500 million, 2015+ £1500 million/Y)

• OFF Shore UK – prioritized for profitability and volume– Focus Rnd 3

• ON Shore UK – value creation and flexibility– Scotland, Northern England

– Green field, early stage

– Minimum 10 WTG

– Assess together

– Sensible compensation

– Financing – from the balance sheet

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UK Wave Power – Today

• 51% ownership in Pandion Ocean Power in Ireland

• Founded a company, Tonn Energy, in Ireland with with the

purpose to establish sites (5 MW test site).

• Joint wave power project with Pelamis in the Shetland

Islands

• Founded a company, Aegir (10.5 MW test site), in Scotland

to establish sites

• Tonn & Aegir are “mini-utilities”

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Wave Power – the Future

Our ambition:

• Vattenfall have ambitions for some 30 TWh for 2030+.

• Harvesting 30 TWh means an investment of some 15 to 20 b€, and an annually O&M cost of 0,5 b€.

Help!

• Provide consistent & enduring rules

• Support the developers to become commercial.

• Investigate the environment

• Allocate wave farms to suitable areas

• Develop the electrical grid (even for export)

What we do:

• Penetrate markets & contractors

• Co-operations with Authorities & Universities & Marine Institutes

• Co-operations with companies in Sweden, Ireland & Scotland - can invest in suitable companies - part ownership

• Joint ventures for the site developments

• Assess together, sensible and fair compensation

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Wave Power – the Future

Technology:

• ”Wet” prototype – tested in storms

Development sites:

• Large, utility scale, i.e. >200 MW

• The west cost of Ireland and the British Islands

• The depth >80 m

• Near a grid connection

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Thank You!